Recap Quiz 6: Strategy Formulation And Implementation

Front 1

There is definitive evidence that strategic planning in the international arena always results in
higher profitability.

Back 1

False

Front 2

An economic imperative approach to strategic planning is used when a product is regarded as a
generic good and therefore does not have to be sold based on name brand

Back 2

True

Front 3

When the need for national responsiveness is high and the need for global integration is high, a
multi-domestic strategy is appropriate.

Back 3

False

Front 4

External resource analysis helps the firm to evaluate its current financial strengths and
weaknesses

Back 4

False

Front 5

In emerging economies undergoing rapid changes such as privatization, governments have
generally been apprehensive and uncooperative with MNCs.

Back 5

False

Front 6

According to the text, strategic planning helps MNCs to do all of the following except:
A. Coordinate and monitor its far-flung operations
B. Deal with political risks
C. Determine performance
D. Get higher profitability

Back 6

D

Front 7

MNCs using the _____ approach to strategic planning are country-responsive; their approach is
designed to protect local market niches.
A. Administrative coordination strategy
B. Economic imperative
C. Quality imperative
D. Political imperative

Back 7

D

Front 8

Typically, MNCs utilizing this approach to strategic planning use a country-centered or multi-
domestic strategy.
A. Quality imperative
B. Administrative coordination
C. Political imperative
D. Economic imperative

Back 8

C

Front 9

Which of the following is not an advantage of first-mover strategies?
A. Capturing learning effects important for increasing market share
B. Achieving scale economies
C. Development of alliances with the most attractive local partners
D. Capitalizing on well-established legal, institutional and political frameworks

Back 9

D

Front 10

Which of the following is likely to be the most effective strategic approach for the "base of the
pyramid"?
A. Incremental adaptation of existing technologies and products
B. Establishing partnerships with central governments of emerging economies
C. Leapfrog technologies including disruptive technologies
D. Large-scale strategies

Back 10

C

Front 11

All of the following are features of a "born-global" firm except:
A. They export products to close markets
B. They employ strategies like unique-products development
C. They indulge in significant international activity a short time after being established
D. They seek joint ventures or acquisitions as a method to expand internationally

Back 11

D

Front 12

The primary reason for the use of _____ is a desire by the MNC for total control and the belief
that managerial efficiency will be better without outside partners.
A. Licensing agreements
B. Franchising
C. Wholly owned subsidiaries
D. Joint ventures

Back 12

C

Front 13

The non-equity venture:
A. Is characterized by one group merely providing a service for another
B. Provides the most benefits when the need for product specification or differentiation is high
C. Involves a financial investment by the MNC in a business enterprise with a local partner
D. Organizes worldwide operations based primarily on function and secondarily on product

Back 13

A

Front 14

Aircraft manufacturing fits which of the following globalization versus local responsiveness
combination?
A. High pressure for globalization, high pressure for local responsiveness
B. High pressure for globalization, low pressure for local responsiveness
C. Low pressure for globalization, low pressure for local responsiveness
D. Low pressure for globalization, high pressure for local responsiveness

Back 14

B

Front 15

Clothing manufacturing fits which of the following globalization versus local responsiveness
combination?
A. Low pressure for globalization, low pressure for local responsiveness
B. Low pressure for globalization, high pressure for local responsiveness
C. High pressure for globalization, low pressure for local responsiveness
D. High pressure for globalization, high pressure for local responsiveness

Back 15

B